WSI Manufacturing has filed for bankruptcy after a patent infringement lawsuit decision was made in Oklahoma. The determined that WSI’s acts in this case were willful, and awarded the defendants $600,000, but the judge in the case stated that he was considering tripling the fines. WSI continues to fight the decision, saying they will appeal.

The privately held company has annual sales of approximately 3.5 million and 15 full-time employees. They claim that the Chapter 11 proceedings will not affect their workforce, but coupling the lawsuit with heavy competition from Nike and Under Armour may result in more than reorganization.

According to the company, operations will continue as scheduled during the planned reorganization. Currently WSI distributes to sporting goods retailers like Galyan’s and Eastbay, and delivery should not be interrupted.